Myer - Reducing Directors by 2 is like throwing a Deck Chair off the Titantic to keep it a float.

As reported in the press today Myer intends to reduce the number of directors by two which will save exactly $215,652 in Directors Fees per annum based on the 2019 Financial Statements and is symbolism at best and a distraction from the main game which is how to turnaround the poor performance of Myer over the last 5 years (see the results summary below) and the decline of the Department Store Sector globally over the last 20 years.

As a shareholder, Solomon Lew of Premier Investments and Geoff Wilson of Wilson Asset Management should work together and remove the Board and Management at the right time and put in place a bold plan to transform the business. Solomon Lew called the state of Myer as 'Disastrous and shameful'.

The current Myer Executives and Board are out of their depth in re-engineering the business for a digital age. Myer looks the same as 15 years ago or 25 years ago, filled with ordinary uninspiring full price (over-priced) fashion that customers only buy on sale. Compare this to H&M, Uniqlo, or Zara stores that are a third of the size, half the price, and the same quality, and the changes required in structure, product, and developing new customers is massive (In my opinion, you would not get a millennial or Z generation into the store unless they got lost)

The current management team and board are not going to make the radical changes that are required to reverse the decline and grow profitability (not necessarily grow sales ) as in my opinion it is beyond their current capability and it means their jobs are at risk.  Better to bring in a new team with a plan beyond tinkering.

The shareholders of Myer need to focus with their wallets in mind, that’s for sure. The only smart shareholders are the ones shorting the stock - they are on the winning horse there. The prize for sticking with the current Myer Team is a free ticket on the Titanic